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The following income statement is for T Company's two products, A and B: Product A Product B Revenue $91,000 $85,000 Total variable costs 51,870 43,350

The following income statement is for T Company's two products, A and B:

Product A Product B
Revenue $91,000 $85,000
Total variable costs 51,870 43,350
Total contribution margin $39,130 $41,650
Total fixed costs
Avoidable 18,058 33,090
Unavoidable 13,622 22,060
Profit $7,450 $-13,500

If T Company drops Product B because it shows a loss and is able to use the vacant space to increase sales of Product A by $26,700, with $5,000 of additional fixed costs, what will be the effect on firm profits?

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